Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
I’ve been planning on writing about this ever since I ran a poll on whether or not you sneak food or drinks into the movie theater, but I never got around to it. However, we recently went to Pirates of the Caribbean: At World’s End (or P3 as my oldest son likes to call it) and that got me to thinking about it once again…
Have you ever wondered how theaters make money? Well, according to a slightly dated article from CNN/Money:
“Most of the money from ticket sales goes back to the movie studio… During the film’s opening week, the studio might take 70 to 80 percent of gross box office sales. By the fifth or sixth week, the percentage the studio takes will likely shrink to about 35 percent.”
Of course, studios also pay theaters to run trailers (generally on a per head basis), and the ads that are shown on the screen before the movie (or mixed in with the trailers) are another source of income. But according to Howard Edelman, owner of Movieland Cinemas:
“Owners joke about being in the candy business. If you didn’t have concessions at a movie theater, there would be no movie theater. We have movies just to get people in to buy popcorn and candy, where we make our money.”
In fact, concessions are so profitable that outside companies will sometimes pay an up-front fee for the privilege of running the concession stand and splitting the profits with the theater owner.
So does this change my view of sneaking snacks into the theater? Not really. The day we went to see P3, the theater was well over half empty. Even if the owners were getting a small cut, say 20-30% of the ticket prices, they still pocketed $6-$9 from our $30 matinee ticket purchase (plus a bit of extra cash from having a few additional butts in the seats for the trailers). Had we skipped the theater, they still wouldn’t have sold any additional concessions, our seats would have been empty, and they would’ve ended up missing out the ticket revenue entirely.
Am I rationalizing? Sure, I guess you could say that. Could we have simply skipped the snack? Yep, but we rarely go to the theater, and when we do we like to live it up a bit. Besides, it’s not like theaters have a plethora of healthy snack choices at the concession stand. In the end, I view it as a win-win situation.
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (693)
- Dish Network Customer Service SUCKS (536)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (329)
- How Much Should You Pay a Babysitter? (286)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (235)
- Will Mac OS X Lion Kill Quicken 2007? (191)